Fixed income portfolios face difficult future

Risk staff

09 Sep 2003

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Investors could redeem large amounts from fixed income hedge funds soon after the recent bond market falls, both due to funds' performance being wiped out and a healthier economic outlook, according to fund managers.

David Smith, chief investment officer at GAM, said the recent sell-off and volatility could pose a serious longer-term risk to the industry. Some investors who viewed fixed income as a lower return, lower risk class could lose confidence in hedge funds, he said, especially if their m